The Reign In Spain Is Over

Tyler Durden's picture

From Mark Grant, author of Out of the Box


Spain Capitulates

Spain has now officially asked the European Union for aid for its banks. The markets seem to be responding as if the bank issue is isolated. It is not isolated. We are following the same schematic as we did with Ireland; first it was the banks and then it was the country and then the “Men in Black” showed up to take over. Spain says it is a 50 billion Euro problem and the reality is probably more like a 400 billion Euro problem. There is all kinds of cross lending between the banks in Spain and while Spain’s largest two banks have tried everything they could to isolate themselves; I predict there will be no escape for anyone. Now that Spain has asked for a bailout of their banks the European auditors will show up and I would bet large money that the values of many loans and the value of Real Estate and the securitizations tied to it will be found to have been vastly overstated. Then it will be the regional governments and their debts and the house of cards will implode. The Spanish Finance Minister kicked off the first domino this morning and we can all just stand by now and watch the rest fall.

Bear in mind that the current Stabilization Fund in Europe, not the one that is not even yet in existence, has nowhere near the capital to shore up the Spanish banks much less the country. The G-7 is having an emergency meeting about Spain this morning and while there is a lull presently; it will not last. The periphery nations, led by Spain, are pushing on Germany and the funding nations to step-in but the cost will be very high and a huge loss of sovereignty. I doubt if many in Europe understand the price that will be extracted which will be the EU taking over Spain’s financial system, taxes and social services so that Brussels/Berlin will control the country. Spain arrived at the precipice, as I have predicted many times and this morning; they have fallen over the edge.

So long and thanks for all the sardines!

Sancho is no longer fighting with windmills this morning. Notions of some charming book or a small foray into the countryside have been replaced by a much more serious confrontation where Germany will demand vengeance for the irresponsible behavior of Spain. Make no mistake here, don’t get fooled again; Spain is going to come under the heel the jackboot and applying what motives you may to Germany will make little difference in the end. The current government of Spain will no longer be in control. First it will be the banks and then the regional debt and, recognizing the inevitable yet or not; the end-game began this morning. Spain is done!

I'll be seeing you
In all the old familiar places
That this heart of mine embraces
All day through


In that small cafe
The park across the way
The children's carousel
The chestnut tree
The wishing well 


                           -I’ll be Seeing You

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
maxmad's picture

El Collapso, Senioritas!

maxmad's picture

Ben Dover Speedy!  Gonzalez




GetZeeGold's picture



Grab a Green Chute......they're going fast.


Going green put them in the red.....anyone else got any more great fukin ideas?


Popo's picture

I seem to remember a Spanish organization called ETA that had some interesting ideas.

clones2's picture

I thought Spain was "fine"... :-)

Harlequin001's picture

It was, until about twenty past three...

DaveyJones's picture

The champagne in Spain lies mainly down the drain

Harlequin001's picture

Apart from the Armada, which sank, did anything of note other than Don Quixote come out of Spain?

apart from a shit load of worthless paper that is... and yellow fever...

and spanish onions...

Lucius Cornelius Sulla's picture

They have some awesome accoustic guiter players including Paco de Lucena.  Salvador Dali and Pablo Picasso made their mark...

However, never hire a Spaniard to balance your checkbook!

sdmjake's picture

Spanish Boots of Spanish Leather.

and some pretty tasty red wine...

Optimusprime's picture

Zurburan, Velazquez, Utrillo, El Greco, Lope de Vega, the Tercios, the Reconquista, etc, etc, etc.  What an idiotic question.

Harlequin001's picture

so, going back over nearly 1500 years you managed 7 things, one of which was French. Cool...

mr_T's picture

Wow.. some ZH readers with culture..

12ToothAssassin's picture

Alberto Contador, Miguel Indurain, Samuel Sanchez

DaveyJones's picture

lots and lots of castles, art, exploration, and (as mentioned) very good guitar players

Harlequin001's picture

so nothing really worth mentioning then?

DaveyJones's picture

good point - really good guitarists and artists never make any money 

or get any girls

Calmyourself's picture

Remember an org called the IRA?  Fat lot of good it did in Ireland..  No, Spain will take its medicine as it has been conditioned to do over the last fifty years..  We cannot endager the nanny state by resisting our betters..

antaresteleko's picture

Hey Popo, let me put things straight:

ETA is a TERRORIST organization that has killed more than a thousand people who lived in a democracy. The methods they have used so far range from shooting in the head of politicians in front of their wife and children, to bombing shopping centers and airport terminals.


Please be careful when you talk. These people have other means in Spain to defend their political ideas than killing.

piliage's picture

This just in from PM Rajoy, "Bailouts! We ain't got no bailouts. We don't need NO bailouts. I don't have to show you any stinking bailouts!"

UBIGDummy's picture

lets show them the compassion and the lack of respect for international law, that they showed the salvage company who's silver they stole via USSA courts.  


Sell that silver.  US Taxpayers don't need to fund theives!

insanelysane's picture

No problem here,  No problem here.  No problem here.  No problem here.  No problem here.  Hey we have huge problems here, why isn't anyone helping us, NOW!


smb12321's picture

Why all the pessimism?  After all is said and done you'll be able to travel cheaply to a beautfiul land, enjoy a fabulous paella with a nice Rioja and take a siesta to boot!  The PIIGS should return to pre-EU status as vacation spots with strong extended families and wonderful local food.   Leave the heavy hitting to the Germans, Finns, Dutch and Swedes.

Paracelsus's picture

Er,this Paella tastes funny,something extra in the ingredients?

Peter Pan's picture

We all need to ask ourselves just one question. If everyone is turning to Germany to save the Euro, what will the outcome be if Germany itself starts to post negative growth, growing deficits and growing national debt?

Exactly, there is no basis for truly saving the Euro.


ATM's picture

Never fear. The Euros will then run to Helicoptor Ben. When we Americans reach the cliff, no one will have anywhere to turn. So remain calm. All is well!

piliage's picture

Oops. Too Late. German PMI just tanked. I see Big Ben's Giant Control P on the horizon.

But Krugman says we need to spend several trillion more so I'm sure it is all OK.

kridkrid's picture

Krugman is half right... austerity won't work.  It's the part where he believes that something will work that he misses the mark. 

brooklynlou's picture

Asset stripped by the Germans before they bail on the Euro or asset stripped by the Americans before they go on a printing spree.

Scylla, meet Carybdis; Carybdis, Scylla. Pick ...

Calmyourself's picture

Wrong, we will run to our ATM, China and they in turn will demand Hawaii and Alaska...

Treason Season's picture

Nightmare scenario: President Hitlery says, "Hey, the Chinese bought us fair and square so it's my duty to enforce American servitude for our new masters."

smb12321's picture

Germany's future?  Bleak at best.  She leads the EU in population loss (no kids) despite 200,000 Arab immigrants yearly.  Her society is in inexorable transformation. She made changes in the 90's that gave her an extra decade but in the end, someone has to pay for all those services and pensions and in her case, it's the State of course. She won't have that kind of money with dwinding taxpayers.

piliage's picture

Is this a typo? Did you mean Germany or California?


GeneMarchbanks's picture

I see you've added pichas to your arsenal of song lyrics, cartoon quotations and overall terribly generalized Hollywood analogies. Can't say I'm surprised... your fans will gladly embrace this new tact once they are done coloring and find their way over to your daily nonsense of clumsy non/dis-info.

maxmad's picture

Maybe you should switch back to Steve Liesman and your other B-tches at CNBC! 

GetZeeGold's picture



Steve...check your mail. Your Nobel Prize should arrive today!


maxmad's picture

Gene, Looks like your boy Liesman is getting his A$$ handed to him right now!  LOL 

JOYFUL's picture

I'm big on cartoon quotations, they tend to be more reflective of "reality"anymore than the sad pastiche that passes for it's replacement...but I honestly don't know what yu done did or said to deserve all those down arrows Gene...

I'd give yu one up arrow, but what's the's tru, Mr Grant is a wacked out klown of the kind that all too often finds it's way to the top banner of ZH,[Sancho did not 'fight windmills-he was actually the voice of 'reason' to El Don's visionary madness!" -anyone who can confuse the two main  characters of the first and greatest major epic novel of the European world is truly an ass!]...

but if he actually quotes cartoon characters I'm gonna have to go back and review his ouevre before writing him off!

hnaparst's picture

Thank you.  At least I'm not the only one screaming here about the butchering of literature.  But let's face it, no one reads anymore. The amazing thing is that Grant quotes literature like an intellectual but hasn't even read the books!

GeneMarchbanks's picture

I believe the moment he used an Eeyore quotation I went from suspicious to ... well kind of astounded.

 But let's face it, no one reads anymore. The amazing thing is that Grant quotes literature like an intellectual but hasn't even read the books!

There is no reason to read when you can have well paid men in suits tell you exactly what you want to hear.

Don Keot's picture

Sancho "I sometimes think that all you tell me of knighthood, kingdoms, empires and islands is all windy blather and lies".  In my day this was the literary parable we had to write our paper on.  I have never forgot it.  Quixote saw life as he wanted it to be, rather than how it really was.  Not much has changed.  There seem to be millions of Don Quixote's out there.  Not too many on ZH, life is seen how it is rather than how it should be.

LULZBank's picture

Spain says it is a 50 billion Euro problem.

Only 50 billion Euros?

Bruno Iksil would'nt even get out of bed for that kind of money.